Central National Bank - New York, NY

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: November 23, 1877
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: 57810b35

Response Measures

None

Description

Article (Chicago Daily Tribune, 1877-11-24) reports that the Central National 'had suspended.' It describes the bank as weak, small deposits, and that officers claim depositors will be paid in full. No run is mentioned; the bank is described as having 'failed'/'suspended' — no reopening or receivership explicitly reported. Classified as suspension leading to closure (failure) given language calling it a suspension/failure and limited business ties; flagged uncertainty because no explicit receiver or formal liquidation is mentioned.

Events (1)

1. November 23, 1877 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank described as weak, new, with few business connections and small deposits; suspension followed from bank's insolvency/weakness.
Newspaper Excerpt: The announcement was made early in the day that the Central National had suspended.
Source: newspapers

Newspaper Articles (1)

1. November 24, 1877 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, November 24, 1877

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Article Text

Business Indications Last Week ---A Warning to English Financiers. The Produco Markets Unsettled and Irregular---Hogs Lower--Provisions Active and Easier. Wheat Weak. but Closed Firmer--Corn Strong for November---Novement at and Towards the Scaboard. FINANCIAL. The announcement was made early in the day that the Central National had enspended. The bank was nemail ene, with few business connecHons out-ide the city. It has not been in operation long enough to work up a large line of deposits, and whatever loases result from Its failure will be small. The officers of the bank claim that the depositors will be paid In full. Little exciteinent was occasioned by the suspension. as the Interests affected are narrow. and the business public had for some time been aware that the bank was weak. The situation generally in financial circles was quiet. The demand for accommodations was not pressing. Rates of discount were 84410 per cent at the banks to regular customers; on the street, call loans are UQS por cent. Orders from the Interior for currency were light. New York exchange was sold between banks at 75c78$1.00 per $1,000 discount. The clearings were 51. 100.000. " CONSIDERABLE DANGER AHEAD." The London. Times raises a cry of warning about the condition of the Bank of England. The Bank of France is resorting to financial tactics superior to those of the Bank of England. While the latter has raised its rate to 6 percent. the Bank of France keeps 11. nominal rate at 2 per cent. and transacts agood deal of business nt still lower rates. The consequence 14, that English borrowers go to the Bank of France with their discounts, and the lator institution is gaining a much better control of the loan market than the Bank of England. The French command of the available gold 14 further increased by large sales In London of stocks from Parts, This state of affairs makes the porttion of the Bank of England very difficult. That institution bas been trymg to raise the market rate of discount by borrowing on consols; but this weak maneurre has had no effect in consequence of the abundant supply of funds from the Bank of France. he Trace looks forward to n drain of gold to America to pay for corn and cotton, as it does not In Here shipments of bonds and other securities to America can be made in suilicient quantity. The prospect leads It to PAY with unusual emphaels: There Is, in a word, still considerable danger abran, which the continued care of the home money-market should not blind us to, and, whatever hardship it 14 to the Bank of England to lie out of the market CA it now doc. there seems very little probability that it can revert to lower rates for some time to come. BUSINESS INDICATIONS or LAST WEEK. NEW YORK, Nov. 23.-The Public says Contress 1s n curre. But for general alarm In business cir. cles, and the fact that bills are pending which may disturb all values and affect all contracts and calculations for future, It le harily possible that for the last two weeks transactions. with large crops, peace here. and war In Europe, should have cen less than those of the week following the Presidential election. There has been no such decline In prices since November, 1876, as to necount for any Increase In the exchanges. When we consider that Congress may remain in ression until next June or July, and that there will be constant danger of mischievous legislation at least, unless the President succeeds in showing that his veto will surely suffice to arrest every assult upon the public credit, the prospect to not very charming. Lost week's clearings, compared with same week of n year ago, show gains as follows: New York. 8-10 per cent: lloston, 7-10; Baltimore, 8; Milwaukee. 10: Louisville, 13 6-10. Lurges are 04 follows: Philadelphia, 113-10; Chicago, : 5-10: Cincinnati, 0 11-10: St. Louis, 10 2-10; New Orlean", 5.6-10: Pittsburg, 0-10, A CORNECTION. The World, of New York, in correcting a niletake made by the London Economist about the currency of this country, makes an Important omission In Its turn. The Economist said: New circulation under the law 1874 requires the deposit of 80 per cent of the amount In legal-tenders -greenbacks-at the Treasury. The Worldways: The facts are. and London was believed to know them. that National-Hank notes are secured entirely by deposit of United States bonds. and issued to no greater extent than DO per cent of the market value of the bunds. The Inct 1a that notes are issued to the extent of 1.0 per cent of the market value of the bonds only, If that does not exceed 00 per cent of the par value, 118 will be FROM by reference to See. 5. 171 of the National-Bunking act. In the same trano of the Economist It to said that the present silver coins of the United States are legal-tender for 820. They are legal-tender for only $5. THE STOCK MARKET. The stock market was reported by the New York Times of Wednesday In be dall, the trading being almost exclusively contined to the clique overators. The regular commission-housew complain of an utter dearth of business, and hope for no change for the better until stocks become more which distributed. The fact that large blocks of stock are held In few hands places the market in a critical c ndition. and deters outsiders from mak. Ing speculative ventures, THE STUGULE FOR GOLD. The Paris correspondent of the London Times telegraphs that the National Bank of Holland has raised the price of its stock of Napoleons (20 francs) from 1,057% floring to 1,0%0 forins n thousand. The object is to check the export of gold coin to Belgium and France. its stock having been reduced in three weeks by nearly 000. 000